The latest rental market report from Zoopla has just come out and it makes for interesting if somewhat unsurprising reading. Following the rises in interest rates, the slowdown in the construction market and the general malaise in the residential property market it was inevitable that the renters would bear the brunt. The figures though are still quite staggering.
Demand for rented property is a massive 51% above the five year average. The number of homes for rent is 30% below average for this time of year. The average agent has less than 10 properties on their books, a reduction of over 50%. Rental growth has now been in double digits for over 18 months. This has all led to a shift towards smaller properties and apartments have been increasing popular with renters. Some of the key takeaway from the report are below.
Key points from the report.
- Rents for new lets are up 10.5% over the year (12.2% a year ago)
- Rental inflation has been in double digits for 18 months
- Average renter has seen costs rise £2,800 over last 3 years
- Scotland recording fastest growth in rents at 12.7% where rent controls are forcing landlords to maximise rents for new lets
- The UK rented sector remains stuck in a period of low supply and high demand.
- Affordability is the key influence on rental growth
- Rents continue to outpace earnings and rental affordability is now the worst for over a decade
- Rents for new lets expected to increase by 9% in 2023, then slow to 5-6% in 2024
